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However, the only homeownership activity that is allowed as a public service is downpayment assistance. What are the options available to Apple? Grantees must set up a separate activity for each public facility. Your question is concerning the national objective as it relates to a company that wishes to relocate from the south of city to the north of the city in order to expand operations. This form gives authorization for the HOME PJ to verify military service income of all the members of the household applying for participation in the HOME Program. In contrast, if two sets of income or affordability-period requirements apply to the same units, there is no direct conflict; grantees must satisfy both by applying the more stringent requirements. table.style.display = ''; How do I determine if what my agency does under Community Development Block Grant (CDBG) or Community Development Block Grant Disaster Recovery (CDBG-DR) is housing counseling as defined at 24 CFR 5.100? Income eligibility determination is an important part of documenting national objective compliance for activities carried out with CDBG-CV funds. The urban county needs to establish policies and procedures governing its process for selecting activities for funding, including when and how a county may provide funds to participating units of general local government (UGLGs). It is the correction of the code violation, such as rehabilitation, that directly benefits the household and would be eligible under the Low and Moderate Income Housing (LMH) national objective. Repay current market value if a Change of Use does not meet a national objective. Salaries for job training participants are not considered an activity delivery cost of job training. There are two thresholds that trigger Davis-Bacon in the CDBG Program. Are original signatures required on the Consolidated Plan certifications and SF-424s? When do I need to make sure the overall income benefit is documented? Your agency's oversight should be in the form of monitoring to ensure compliance with CDBG regulations and any requirements imposed by your agency. Although the entitlement community is located within the urban county's physical boundaries, it is considered outside of the jurisdiction of the urban county for CDBG program purposes. Henceforth, however, an activity that does not meet the definition of 24 CFR 5.100 should not be called housing counseling. Grantees will need to come up with another term to characterize this type of activity, such as housing information and referral services or homeownership education program or general budget/financial counseling. To be an eligible area for carrying out CDBG-assisted code enforcement, the area must be deteriorated/deteriorating in accordance with state/local law. Under 570.202(c) a neighborhood cleanup would not be eligible as a code enforcement activity. if (txtValue.toUpperCase().indexOf(keyfilter) > -1) { HUD computes one allocation amount for the UC as a whole, including the demographics of all participating UGLGs plus the unincorporated areas of the county. The city currently uses CDBG funds to operate a homeowner rehab program. two bids must be received). For a multi-family project, the new construction accessibility standard must be met if the project has 15 or more total units and the cost of the rehabilitation is at least 75 percent of the replacement cost of the completed facility (see 24 CFR 8.23 in the link below). Instructions on how to complete the SF-424 form can be found at www.grants.gov. Option 2 (separate each unit): The grantee may enter each homeowner under a separate IDIS activity. CDBG funds may be used to pay the costs of the hearing. Demolition of buildings may be eligible under 24 CFR 570.201(d) and Section 105(a)(4) of the HCDA. Your question is about federal labor standards requirements for apprentices in a Step-Up program. To request that a portion of the Promise Zone area also receive NRSA designation, the grantee should submit the NRSA proposed boundaries and demographic information for HUD review. Section 110 requires the payment of wages at rates "not less than" the local prevailing wages determined by the U.S. Secretary of Labor under the Davis-Bacon Act. /* Not used. As an overview, down payment assistance is exactly what it sounds like: paying part of the required down payment. What happens when a business assisted with CDBG funds fails to create the number of jobs expected or the business closes? This webinar is designed for grantees using HOME, HOPWA, CDBG, CDBG Disaster Recovery, BEDI, Section 108, and/or NSP for rental housing activities where adjusted income is used (i.e., ability to pay for rent and utilities), including tenant based rental assistance programs. National objective based on end use; LMA or LMC in this example. 1601 (opens new window), et seq., and its implementing regulation, Regulation Z (12 CFR 1026 (opens new window)), were initially designed to protect consumers primarily through disclosures.Over time, however, TILA and Regulation Z have been expanded to impose a wide variety of requirements and restrictions on consumer MF Compliance Manager:Renee Dickinson, 651.296.9491,renee.dickinson@state.mn.us, Copyright 2022 Minnesota Housing Finance Agency | Equal Housing Opportunity, Stay up to date on Minnesota Housing's Multifamily compliance-related news and updates by signing up for our. The final decision on who will carry out activities in the urban county rests with the county. Generally, you can use liens on real property and equipment not directly associated with the loan, as this is one of the acceptable security requirement examples listed in 570.705 (b)(3). Section 102(d) of the Housing and Community Development Act (HCDA) states: " the population of any unit of general local government which is included in that of an urban county shall be included in the population of such urban county for three program years beginning with the program year in which its population was first so included " Therefore, even if an UGLG reaches the 50,000 population threshold during the three-year qualification period, it must remain with the urban county until it requalifies. The Applicant Identifier (Item 4) is the number assigned by HUD to the grantee for the grant program. It depends on when the county became an urban county. document.getElementById("no_matches").style.display = 'none'; For example, if a grantee's FY 2018 grant is $500,000, and the grantee received $100,000 in program income during program year 2017, the maximum amount of CDBG funds it can use for public service activities for program year 2018 is $90,000 (($500,000 + $100,000) X 15% = $90,000)). function myFunction(e) { If grantees use CDBG funds to purchase these items, their use is limited to use in CDBG-eligible areas. The grantee may be able to recategorize costs such as homebuyer education and credit counseling as a public service (provided the public service cap is not exceeded). There is no requirement that a subrecipient have its own separate policy or plan for affirmatively furthering fair housing, although the subrecipient must comply with general fair housing requirements in carrying out a CDBG activity. In reporting on housing counseling in IDIS, grantees must use the new matrix code, 05Y. If it has been an urban county since 1999, it is grandfathered as an urban county and cannot lose that status. if (tdTopic) { resetFilter(); If the group home is in fact residential, as opposed to a transient homeless shelter, and is designed similar to a single-family home, it would not be covered by Davis-Bacon under the language of Sec. In most service areas, the grantee can often rely on Low and Moderate Income Data (LMISD) from the Census Bureau to document the income of persons living within the boundaries of the activity. (See Question #1 for instructions on completing this process.). L. No. All program requirements such as the 20 percent planning and general administration cap, the 15 percent public service cap, the 70 percent overall benefit requirement, low/moderate income summary data, and the upper quartile exception criteria, etc. The nonprofit organization agrees in writing to return to the grantee any assistance that the household was ineligible for or for which the required documentation is not received within six months. Recipients (and subrecipients) must include accurate information in drawdown requests. Sale proceeds are program income. Code enforcement is a process whereby local governments gain compliance with ordinances and regulations regarding health and housing codes, land use and zoning ordinances, permitting, sign standards, and uniform building and fire codes in deteriorated or deteriorating areas in which such enforcement, together with public or private improvements or services to be provided, may be expected to arrest the decline of the area. Certification signed by applicant that no member of family has disposed of assets for less than fair market value during preceding two years. Using homeownership counseling programs to expand the pool of qualified buyers and to filter out households who are not yet ready to buy; Reducing the sales price to decrease the primary lender's risk and to increase the range of buyers who are able to afford a lower monthly payment; Investing additional CDBG funds to provide down payment assistance and/or closing cost assistance; or. The contract award should be made to a contractor whose bid is determined to be a reasonable bid in comparison to the internal cost estimate and other bids. The county would consult with the city on activities it wants the county to carry out on its behalf. In such cases, the change of use rules apply, as described at 24 CFR 570.505 for entitlement grantees and 24 CFR 570.503(a)(7) for subrecipients. For example, housing counseling for potential homebuyers may be included as part of the activity delivery costs for Direct Homeownership Assistance activities or for Housing Services activities in support of the HOME program; grantees might provide basic home maintenance information or financial literacy training as part of a housing rehabilitation program. } else { 1026.54 Limitations on the imposition of finance charges. Grantees must also have controls in place to ensure compliance with their policies and procedures and prevent fraud. The revised award term for ERA1 issued by Treasury permits recipients to use funds provided to cover both direct and indirect costs. A CDBG grantee may contact its CPD representative in the local HUD field office to request technical assistance. Must national objective compliance be demonstrated? The most updated version of the Application for Federal Assistance, or SF-424 form, may be found at www.grants.gov. The documentation for national objective is LMI benefit via the creation of jobs (24 CFR 570.483(a)(4). Grantees may also subsidize the mortgage principal amount. Persons may be defined as homeless by other statutes, such as section 387 of the Runaway and Homeless Youth Act, section 637 of the Head Start Act, section 41403 of the Violence Against Women Act, section 330(h) of the Public Health Service Act, section 3 of the Food and Nutrition Act of 2008, section 17(b) of the Child Nutrition Act of 1966, and section 725 of the McKinney-Vento Homeless Assistance Act. Treasury strongly encourages grantees to develop partnerships with courts in their jurisdiction that adjudicate evictions for nonpayment of rent to help prevent evictions and develop eviction diversion programs. If public property supports and eligible activity and meets a national objective, then remains eligible program activity. Under this provision, before the date of the grant agreement, a grantee or their subrecipients may carry out a project using non-CDBG funds with the understanding that they may reimburse those non-CDBG funds from one or more future CDBG program grants. Grantees may use ERA funds to pay for an additional rental payment required by a landlord as a condition to entering into a lease with a hard-to-house household that would not qualify under the landlords previously established, non-discriminatory, and lawful screening or occupancy policies. HUD executes one grant agreement with the UC. Grantees are required to have written documentation that defines deteriorated/deteriorating and how they determined that areas were designated as deteriorated/deteriorating. This form gives authorization for the HOME PJ to verify alimony and separation payments made to all members of the household applying for participation in the HOME Program. Is it possible to demolish only the portion of the garage that was not built to code using CDBG funds? Under 24 CFR Part 58, the Responsible Entity (unit of local government) must determine the appropriate level of environmental review, ensure that the project complies with all applicable environmental laws and authorities, document any mitigation measures and conditions, and complete all required approvals. WebThe Department of Housing and Urban Development (HUD) requires us to review the income, assets, and family composition of each family we assist once a year. This means that participants would have to be income-qualified to ensure that a national objective is met. Non-entitlement units of general local government (UGLGs) choosing not to participate in the urban county's CDBG program may apply for CDBG funds from the State where it is located or choose not to participate in the CDBG program at all. Janken Housing Solutions offers various tax credit seminars. L. No. For additional information, also see the FAQs on Urban Counties and on Joint Agreements vs. Cooperation Agreements.

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